Cyngn Inc. Raises $9.65M via 5M Share Direct Offering Priced at $1.93
Cyngn Inc. raised $9.65 million through a direct offering of 5 million shares and pre-funded warrants priced at $1.93, with over 90% purchased by a single institutional investor. Net proceeds will fund working capital and general corporate needs and will increase shares outstanding to 16.9 million.
1. Registered Direct Offering Terms
Cyngn Inc. entered into definitive agreements for a registered direct offering of approximately $9.65 million of common stock and pre-funded warrants, priced at $1.93 per share. The transaction was structured under Nasdaq pricing rules and comprises 5,000,000 shares (or equivalent pre-funded warrants).
2. Investor Participation Breakdown
A single institutional investor acquired over 90% of the offering, while a high-net-worth individual purchased the remaining allocation. Each pre-funded warrant carries an exercise price of $0.00001 and is immediately exercisable upon issuance.
3. Use of Proceeds and Closing
Gross proceeds of about $9.65 million are expected to be applied to working capital and general corporate purposes. The offering is anticipated to close on or about March 17, 2026, pending customary closing conditions.
4. Capital Structure Update
Assuming full exercise of all pre-funded warrants, total shares outstanding will increase to 16,896,493. This capital infusion bolsters the company’s balance sheet as it advances its autonomous vehicle technology deployments.